- 84% of South African business and IT leaders say macroeconomic conditions are making them more selective and outcome-driven in their technology investments, while 82% would prefer to consolidate more of their technology needs with a single strategic partner.
- 96% of South African leaders say modern AI PCs and devices will play a key role in their organisation’s future strategy, highlighting the growing importance of workplace technology to AI readiness.
- 90% expect security to be embedded in every proposal from a strategic technology partner, while 92% say integrated data protection and cyber-recovery capabilities are key criteria when selecting storage and server platforms.
Dell Technologies today released findings from its Modern Enterprise Readiness Study 2026, conducted with independent research firm Vanson Bourne. The South African findings are based on 50 business and IT decision-makers and form part of a global survey of 2,950 respondents across 35 countries. Research was conducted in June 2026 and included organisations across financial services, healthcare and life sciences, manufacturing, retail, energy and utilities, and the public sector.
Why It Matters
The findings point to a new phase of digital transformation in South Africa. Organisations are navigating economic uncertainty, accelerating AI adoption, growing cyber threats and evolving regulatory requirements. As businesses look to balance innovation with resilience and compliance, they are increasingly focused on technology investments that deliver measurable business outcomes while strengthening their ability to adapt.
Against this backdrop, four key trends are emerging that are shaping the next phase of enterprise transformation in South Africa.
Finding 1: Economic Pressure Is Driving Strategic Technology Decisions
Economic uncertainty continues to influence technology investment decisions in South Africa. Rather than simply reducing spending, organisations are becoming more focused on value, efficiency and business outcomes.
84% of South African leaders say macroeconomic conditions are making them more selective and outcome-driven in their technology investments. This is contributing to a growing preference for simplification and consolidation, with 82% saying they would prefer to consolidate more of their technology needs with a single strategic partner, where possible.
Businesses are also raising expectations of their technology providers. 92% say they are shifting spend towards partners with the scale, ecosystem and supply chain capabilities needed to move AI and modernisation initiatives from pilot to global rollout.
The findings point to a move away from fragmented technology environments towards strategic relationships that can simplify operations, accelerate innovation and deliver measurable business outcomes.
Finding 2: Modern Workplace Technology Has Become Essential to AI Readiness
As AI becomes more deeply embedded in everyday workflows, workplace technology is evolving from a productivity tool into a strategic enabler of transformation.
The study found that 96% of South African respondents believe modern devices make a noticeable difference to collaboration and meeting quality, while 86% say outdated or underpowered devices limit their ability to adopt new tools, including AI-enabled applications.
This growing dependence on intelligent applications is influencing refresh priorities. 96% of South African leaders say modern, AI PCs and devices will play a key role in their organisation’s future strategy.
For many organisations, workplace modernisation is therefore no longer simply about replacing ageing hardware. It is becoming a foundational requirement for supporting AI-enabled productivity, improving employee experiences and strengthening endpoint security.
Finding 3: AI Adoption Is Advancing, But Scaling Requires Stronger Foundations
AI adoption is gaining momentum in South Africa, but organisations are discovering that scaling AI successfully requires much more than deploying models.
Security, compliance and privacy have emerged as critical considerations as organisations navigate evolving regulatory requirements and growing scrutiny around data usage. 66% of South African leaders say they are concerned about complying with government regulations when leveraging their data for AI, while 44% say security and compliance concerns are the main reason their organisation has slowed or paused AI adoption.
Data sovereignty is also influencing deployment decisions. For sensitive data and AI models, 34% of South African respondents require these to remain within their country or region on infrastructure they own or directly control, while 16% allow a sovereign or local cloud operated by a trusted provider in the region.
Infrastructure readiness remains another significant challenge. 48% of South African leaders say their data centre and infrastructure are not yet fully ready to support their most demanding workloads at production scale, including AI and analytics.
As organisations move from experimentation to operational deployment, success increasingly depends on modern infrastructure, trusted data, strong governance frameworks and clear alignment with regulatory requirements.
Finding 4: Security Has Become a Baseline Requirement
Cybersecurity is no longer viewed as a standalone technology decision. Instead, organisations increasingly expect security to be embedded across infrastructure, devices, AI environments and partner engagements from the outset.
90% of South African business and IT leaders expect security to be embedded in every proposal from a strategic technology partner, rather than treated as a separate add-on.
Reflecting growing concerns around cyber resilience and business continuity, 92% say integrated data protection and cyber-recovery capabilities are key criteria when selecting storage and server platforms.
Organisations are also increasingly looking outside their own teams for support, with 94% expecting their use of managed security services to increase over the next two to three years.
In South Africa, these priorities are also being shaped by the regulatory environment, including the Protection of Personal Information Act (POPIA), which establishes requirements for the lawful processing and protection of personal information, and the Cybercrimes Act, which provides a legislative framework for addressing cybercrime.
Together, these developments reinforce the need for security, resilience and responsible data management to be built into technology strategies from the outset, making cyber readiness a business priority rather than an IT-only concern.
Perspectives
Habib Mahakian, Vice President, Southern & Sub-Saharan Africa, Dell Technologies
“The South African findings show that organisations are moving beyond AI experimentation and becoming much more focused on how they can scale AI securely and turn investment into measurable business value. At the same time, they are recognising that AI readiness depends on the foundations underneath it, from modern infrastructure and AI-capable devices to trusted data, strong security and the right technology partners.
“What stands out is that South African leaders are not simply looking for more technology. They are looking for greater simplicity, resilience and accountability from their technology partners. As organisations navigate economic pressure, evolving regulation and the growing demands of AI, building these foundations will be critical to turning AI ambition into lasting business advantage.”
